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Levies Considered for Indonesia’s Five Super-Priority Destinations

Levies Considered for Indonesia's Five Super-Priority Destinations
Labuan Bajo, East Nusa Tenggara

The Indonesian government is contemplating the implementation of levies for foreign tourists in five super-priority tourism destinations, namely, Lake Toba (North Sumatra), Borobudur Temple (Central Java), Mandalika (West Nusa Tenggara), Labuan Bajo (East Nusa Tenggara), and Likupang (North Sulawesi).

“We have noticed developments as the popularity of Indonesia’s key tourist destinations is on the rise. We are observing this in Central Java, Jogja, Semarang, Solo, Labuan Bajo, and Lake Toba – some of which are super-priority destinations,” stated Vinsensius Jemadu, the Deputy for Tourism Products and Organising Activities at the Ministry of Tourism and Creative Economy on Monday, 30th October 2023.

“Indeed, in the future roadmap for premium areas, they must be prepared to accommodate tourist arrivals. This readiness should also be supported by the existing infrastructure and resources. Therefore, we will also assess the implementation of this tax collection.”

The charges need not be uniform across all destinations, as Jemadu clarified that each location possesses varying capacities and levels of preparedness. Nonetheless, Jemadu underscores that this levy proposal for the five super-priority destinations remains unconfirmed at present.

“If we consider the trends, these destinations qualify as super priority destinations. Nevertheless, we will evaluate the ‘3A’ factors: accessibility, amenities, and attractions. This is merely a topic of discussion and has not been finalised,” he elaborated.

The Rp150,000 levy for foreign tourists entering Bali, set to be enforced from February 2024, has served as a template for other tourist destinations in Indonesia. The Ministry acknowledges that this policy aligns with global practices, as “all countries worldwide are introducing what is known as a city tourist tax.”

Looking ahead, Jemadu added, “From a tourism perspective, we genuinely intend for the tax revenue to benefit the tourism sector, including enhancements in hospitality, the development of human resources, and other incentives.”

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